With comment letters pouring into the SEC in response to the SEC’s proposal to allow companies to voluntary move to semi-annual reporting from quarterly, we have the first company that has specifically indicated it would move to semi-annual reporting if the SEC adopts rules permitting so – although the company would continue its practice of issuing quarterly earnings releases including continuing its accounting close processes (including internal controls) each quarter to maintain the accuracy of its quarterly earnings releases.
And this comment letter from a subset of the pharma industry indicates that other companies that signed off on the letter would also do so (although the letter doesn’t identify who those companies are).
Other companies have submitted comment letters indicating they generally support the SEC’s rulemaking – but they don’t expressly say they intend to move to semi-annual reporting.
Overall, as you can see from this list of received comments on the SEC’s website – there are over 100,000 of them (counting the duplicates) – there continues to be mixed sentiment among those submitting comments with the vast majority of commentators expressing disapproval of moving from a mandated quarterly reporting framework. However, the comment process isn’t a popularity contest and the SEC isn’t required to follow the desires of the majority…
Authored by
Broc Romanek